- Interest rates up is a market reflection of more scarce capital - more competition for capital leads to cheaper shares (hence the lower share price) - and l

- Interest rates up is a market reflection of more scarce capital - more competition for capital leads to cheaper shares (hence the lower share price) - and larger desire for foreign investment / less capital outflow to higher yielding / more capital scarce markets - less capital outflow means fewer yen going out to be transacted for foreign currency (lower forex yen supply) and more investment going into the economy (higher forex yen demand) - lower supply, higher demand, holding dollar steady (partial equilibrium) leads to higher yen relative to dollar